Select Committee on Constitutional Affairs Minutes of Evidence


Evidence submitted by the Ministry of Justice (formerly the Department for Constitutional Affairs)

  At the Constitutional Affairs Select Committee hearing on 17 April I promised to send you further information on the building selection procedure for the UK Supreme Court.

  The attached document outlines the building selection procedure in detail. Although I did not elaborate on our search for a "new-build site" during the hearing, I have I trust, provided you with enough information to satisfy the Committee that the building search was thorough, fair and sensible.

  You will note that we specifically asked our property agents to explore the potential for new-build sites. Unfortunately, they could not locate any private sector sites for development, reflecting the current state of the central London office market. In particular, the agents advised that the Supreme Court space requirement was insufficient to act as an "anchor tenant" and that commercial developers had indicated they would be seeking a pre-let of at least 10,000 square metres to `kick start' a development programme.

  The results of this search are outlined in the attached extract (Annex A), taken from the Record of Procedure for selecting Building, 22 December 2004. During the search Land Securities approached DCA with two properties: Fetter Lane, near the Royal Courts of Justice and Buckingham Gate. Fetter Lane was deemed too large for use as the Supreme Court and was taken up by HMCS. It is now in use as the Business Court. Buckingham Gate was included in the detailed feasibility study, details of which are in provided at Annex B, but it was ruled out because if offered a much less prestigious location at a higher cost.

  I have made some suggested additions to the CASC transcript to reflect both the information on the new-build search and the presumption that an appeal had been lodged against the Judicial Review decision.

  Finally, you asked about the Middlesex Coat of Arms being removed from the Middlesex Guildhall. The Coat of Arms, which appears several times on the exterior of the building, is inappropriate for a UK and Commonwealth institution. The Coat of Arms directly above the front entrance will be removed. Two plaques either side of the front entrance will be relocated inside the building and replaced with new UK Supreme Court and Judicial Committee of the Privy Council plaques. Otherwise the exterior of the building will be cleaned, repaired and left unchanged. Throughout the process we have consulted widely with all local societies and amenity groups including a group of Middlesex MPs led by David Wilshire. Westminster City Council specifically complimented our approach to engaging with all interested parties and we continue to work with them.

Rt Hon Lord Falconer of Thoroton

Secretary of State and Lord Chancellor

14 May 2007

Annex A

RECORD OF PROCEDURE FOR SELECTING BUILDING (EXTRACT)

1.1  Statement of Requirements

  In order to identify the preferred location for the new Supreme Court, a statement of requirements for the building was agreed in conjunction with the Lords of Appeal in Ordinary.

  The headline requirement was for an appropriate building of approximately 3,800 square metres, [3]including three committee rooms, a library and ancillary accommodation for the Justices of the Supreme Court and their support staff.

  Of the three committee rooms, the intention is that two would be in full-time use by the new Supreme Court, with the third being available for use by the Judicial Committee of the Privy Council, and for ad hoc Inquiries. The third would also be required to provide for future business expansion (particularly as the JCPC2[4] is likely to co-locate with the Supreme Court). The building will contain a judicial retiring room for each Justice of the Supreme Court, with two additional rooms for use by part-time members. There will be ancillary accommodation for approximately 35 administrative support staff, of which eight will be dedicated legal assistants employed to assist the Law Lords with their research. The building will also house a law library for the use of the Justices and the legal assistants. Separate dining facilities would also be provided for the Justices, with the provision of canteen facilities for staff and public dependent on ultimate location.

1.2  Why is the Supreme Court being located in London?

  The Supreme Court will sit at the apex of the judicial systems of England & Wales, Scotland and Northern Ireland and as such, it is appropriate that it should sit in the nation's capital, just as the UK Parliament sits in London. This is the approach taken in many other countries where the Supreme Court is sited in the same city as the legislature and the centre of the executive.

  In addition more practical issues were also considered:

    —    The existing Law Lords will become the first Justices of the Supreme Court and, even if they proved willing to relocate, any associated costs would have to be met at public expense.

    —    The staff of the House of Lords' Judicial Office, who currently support the Law Lords, have also been offered the opportunity to transfer to the new Supreme Court and it is likely that some of them would be deterred by an alternative location. Such a loss of experience could jeopardise the operational effectiveness of the Court.

    —    Analysis of historical case details has shown that London practitioners make up the vast majority of those appearing before the Appellate Committee and that this would be the case even if it were located elsewhere. A move outside London would increase practitioner travel costs, which would, in turn, be passed on to Court users.

1.3  Judicial Committee of the Privy Council (JCPC)

  As part of the development of the statement of requirements, meetings had taken place between representatives of the Project and the JCPC about the possibility of their co-location with the Supreme Court and to identify their space requirements. In November the Law Lords submitted their collective response to the consultation document, within which they recommended that the JCPC should be co-located with the Supreme Court. Accordingly a letter was sent to the Lord President of the Privy Council seeking her views towards their Lordships recommendation. The Lord President responded on 27 November to the effect that she could see merit in the proposal, however she felt that further discussions between officials should take place before she was able to agree to co-location.

  During December and January a series of meetings took place between representatives from the Project Team, the Judicial Committee and the Foreign Office, in order to discuss the proposal to co-locate. Following those meetings, the Lord President wrote to the Secretary of State on 10 February 2004 to confirm that she agreed in principle to the co-location of the JCPC with the Supreme Court, subject to the following conditions:

    —    The Privy Council Office (PCO) should not bear any of the start-up costs;

    —    The PCO would bear an appropriate share of the annual running costs;

    —    The JCPC would have a separate entrance and a dedicated Hearing Room, as envisaged by the Law Lords, and offices and other accommodation that are fully adequate for its needs; and that

    —    The JCPC should not move until the Supreme Court itself moves into its permanent new premises.

1.4  Site Search Methodology—Initial Search

  Based on the statement of requirements, an evaluation exercise was undertaken by instructed Estate Agents, Knight Frank, in order to identify suitable locations that met the minimum requirements. Their search involved:

    —    Reviewing the DCA estate in London;

    —    Considering any suitable properties on the Greater London Magistrates' Court Authority (GLMCA) estate;

    —    Obtaining from the Office of Government Commerce (OGC) their known availability of property on the wider Government estate in London;

    —    Contacting 17 Whitehall Departments to determine whether any of their buildings might become available within our initial timescales; and

    —    Searching current commercially available property (within 1 mile of Charing Cross).

  This initial search generated a long-list of 48 properties but only five of which, after closer scrutiny against a number of criteria (size, operational efficiency, adaptability, suitability), merited further consideration. [5]

  The properties concerned were:

    —    Central and Staple Court, WC2—commercial property;

    —    Mathew Parker Street, SW1—Crown estate property;

    —    New Wing, Somerset House—Crown estate/commercial property;

    —    Field House, Bream's Buildings EC4—DCA estate property; and

    —    Victoria House, Bloomsbury Square WC1—commercial property.

  In addition to the five identified buildings, Middlesex Guildhall was also recorded as having met the majority of the evaluation criteria, however the operational impact upon Criminal Business was felt to be detrimental to its overall desirability. On the back of this, an initial submission was put up to Ministers for consideration.

  The Secretary of State convened a meeting on 29 October to discuss the options, at which time two of the locations, Field House and 4 Matthew Parker Street, were removed from scope as not being suitable locations for the new Court. On the 29 the option of a new build was introduced for evaluation, while Middlesex Guildhall was requested to be re-evaluated in conjunction with a plan to re-provide the criminal courtrooms. It was recommended that the search area be expanded to a two mile radius in order to identify a wider range of options.

1.5  Site Search Methodology—Second Search

  Following the meeting of 29 October, Knight Frank were commissioned to conduct a search of possible sites for a new build (or major refurbishment) within a two mile radius of Charing Cross.

  Unfortunately, they were unable to locate any private sector sites for development. It was their expert opinion that this was a reflection of the state of the central London building market. Two potential sites were additionally identified: Cardinal Place on Victoria Street and Belvedere Court at Jubilee Gardens on the South Bank. Both of these are substantial development sites, however the agents on both developments were not prepared to consider a pre-let to the Supreme Court on the basis that the requirement for up to 3,800m2 was insufficient to "kick start" a development programme. The agents confirmed that they would be seeking a pre-let of at least 10,000m2 to commence development and that unfortunately the requirement for the Supreme Court was insufficient to act as an "anchor tenant".

  Although there were no suitable locations within the private sector, Knight Frank were able to identify two potential locations within the DCA London estate. These were St Dunstan's House and Stewart House. St Dunstan's was proposed on the basis of the demolition of the present location and building on the existing "footprint". The proposal for Stewart House was for the exterior shell to remain and the inside to be re-built in order to meet the statement of requirements.

  Accordingly a second submission was put to the Secretary of State on 10 December. On 5 January the Secretary of State convened a meeting with Officials to discus the submission. From that meeting it was agreed that the revised short-list should be:

    —    Central Court

    —    New Wing, Somerset House;

    —    Stewart House;

    —    St Dunstans House; and

    —    Middlesex Guildhall.

  Victoria House was removed from the short-list because another buyer had purchased the original floor that had previously been identified while the remaining floor space no longer met the statement of requirements.

1.6  Site Search Methodology—Evaluation of Options

  Turner & Townsend and Knight Frank were engaged to produce a green book style evaluation of the options under consideration.

  In addition to the work being undertaken by the commissioned consultants, informal soundings of the commercial properties managed through the Corporation of London were also evaluated, following on from the meeting between the Secretary of State and the Lord Mayor on 19 January. Many of these had previously been included within the initial search that had identified 48 properties, however those that were newly identified were evaluated and were included in the February submission.

  Draft green book[6] appraisals were completed by the end of January. These were used to facilitate an evaluation workshop that was held on 2 February. At this event all of the properties under consideration were evaluated against the following criteria: suitability; deliverability; prestige and location; and affordability and value for money (Annex A).

  The buildings evaluated at the workshop were:

    —    Central Court;

    —    Middlesex Guildhall;

    —    Stewart House; and

    —    St Dunstan's House.

  In addition to these sites, there were three other locations that were included in the Business Case but were not included in the green book analysis. These were:

    —    Somerset House—By the time of the February submission the Project Team had not completed the relevant enquiries with HM Treasury, Inland Revenue, Somerset House Trust or DCMS;

    —    Royal Courts of Justice—In response to a query received from HM Treasury letters were sent to representatives of the Devolved Administrations requesting their views about the possibility of locating the Supreme Court within the RCJ complex. In general the views were not in favour of utilising the RCJ as a location, with many vehemently against the possibility of it even being considered; and

    —    The "do minimum" option of remaining in the Palace of Westminster—This had fundamental flaws both in terms of policy and practicality. In policy terms, it would make it much more difficult to demonstrate the principle of separation between the judiciary and legislature; in practice, Black Rod had indicated that it would be unacceptable for the Supreme Court to be located in the Palace of Westminster even on an interim basis.

  In order to supplement the February submission a presentation to the Law Lords was arranged for 9 February. The aim of this was to obtain the Law Lords views regarding the buildings that were under consideration and to discuss with them the up-to-date position concerning the building selection. These views were noted and incorporated into both the final Business Case and the February submission.

  Upon receipt of the submission a meeting was arranged with the Secretary of State on 18 February in order to consider the situation and the building options. At that meeting the Secretary of State agreed with the submission's recommendations that:

    —    Stewart House and St Dunstan's House should be rejected as possible options;

    —    Three building options should remain under consideration: Middlesex Guildhall, Central Court and Somerset House;

    —    That, if Middlesex Guildhall were the chosen option, an adverse impact on criminal justice would be unacceptable.

1.7  Site Search Methodology—Business Impact Analysis

  Following on from the meeting of 18 February a review of the London estate was undertaken through a series of meetings with representatives from GLMCA, South-East Circuit Administrator and London LCJB. The aim of these meetings was to consider a possible solution for the re-provision of the criminal courtrooms that would be displaced through the use of Middlesex Guildhall as the Supreme Court.

  A series of meetings with representatives from GLMCA, South-East Circuit Administrator and London LCJB were undertaken in conjunction with FMG and Project team representatives during February and March.

  On 30 March EC Harris were commissioned to produce a feasibility study into the technical viability, options, costs and timescales of providing the additional Crown courtrooms.

  As part of the further evaluation of the building options under consideration, Ernst & Young were instructed to undertake a financial analysis of the building options as well as consider the potential procurement options available, with regard to providing advice to the Project as to the preferred building/procurement option.

  As part of the evaluation of the proposed architectural plans for housing the Supreme Court at Middlesex Guildhall, a series of meetings were held during March with representatives from English Heritage and Westminster Council Planning Authorities in order to ascertain their views regarding the proposals, the statement of requirements and the deliverability.

  An update submission was sent to the Secretary of State in March, outlining the work that had been undertaken since the February meeting as well as setting out the next steps for delivering a recommended building solution.

  Following receipt, and digestion, of the EC Harris, Ernst & Young, English Heritage and Westminster Planners information (and with no response having been received regarding Somerset House), the options appraisal was revisited; this supported Middlesex Guildhall as the "front runner" (based upon lease disposal/leaseback solution).

  A series of stakeholder events were arranged in order to discuss the options and to obtain the views of the key participants. On 27 April a visit was arranged for the Law Lords to Middlesex Guildhall, so that they could collectively review the proposals and to provide their first hand views.

  On 30 April Lord Bingham, in a memorandum to the Constitutional Reform Bill Select Committee, detailed the views of the Law Lords towards the possible use of Middlesex Guildhall as the location for housing the Supreme Court together with their concerns about the possibility of interim accommodation within the Houses of Parliament.

  Negotiations vis-a"-vis Somerset House had continued between Senior Officials of both the DCA and HM Treasury. On 26 April an indication was received from HM Treasury that they would be prepared to consider giving access to the New Wing Somerset House in order to enable a provisional assessment of feasibility to be undertaken.

  On 7 May a submission was sent to the Secretary of State detailing the state of play at that time and making a series of recommendations relating to the building decision and the buildings that remained under consideration.

  On 8 June the Secretary of State appeared before both the Constitutional Reform Bill Select Committee and the Constitutional Affairs Committee to give evidence about the modernisation programme. Within that evidence he provided an update as to the current position regarding the Supreme Court building.

1.8  Site Search Methodology—Evaluation of Somerset House

  On 8 June the Secretary of State appeared before the House of Commons Constitutional Affairs Committee, followed later on the same day with an appearance before the Constitutional Reform Bill Select Committee. The Secretary of State gave evidence to both that:

    "The potential options identified through a comprehensive search of possible sites in central London have been analysed against a number of criteria, including functional suitability, deliverability, prestige and location, and value for money and affordability. Following this detailed evaluation exercise; two building options remain under active consideration. These are Middlesex Guildhall and the new wing of Somerset House. We will continue to investigate the relative qualitative and financial merits of these two options in consultation with the Law Lords before reaching a final decision."

    (Lord Falconer, Secretary of State for Constitutional Affairs; evidence before the Constitutional Affairs Committee, 8 June 2004.)

  Subsequent to this announcement, on 9 June, in response to an oral question from the Lord Peyton of Yeovil, Lord Falconer expanded upon his earlier answer by confirming that the (building) decision would be made in the autumn.

  In developing the feasibility of Somerset House, initial plans had been drawn up in order to meet the basic statement of requirements. However, these plans, though fit for purpose with regard to the SOR, were not suitable in fully utilising the space available within the structure nor did they meet the stakeholder expectations. Therefore, Turner & Townsend and HOK were commissioned to produce a more interventionist scheme, mirroring the approach taken for Middlesex Guildhall, which would present a structured solution for utilising the space available.

  Following ongoing discussions with representatives from the Inland Revenue, Somerset House Trust and the DCMS, a visit to the New Wing Somerset House was arranged for the Law Lords in order for them to view the site and to provide the Project with their immediate thoughts upon the suitability of the building as the preferred location, as well as their views about the proposed plans. Lord Bingham subsequently wrote to the Secretary of State in order to elaborate upon the views of the Law Lords following their visit.

  On 2 July the Constitutional Reform Bill Select Committee published its report, detailing its findings and opinions arising out of the evidence sessions that it had heard during the preceding months. The Committee made the following comments on the Supreme Court

    "132.  There was a clear division of opinion within the Committee between those members who agreed that the Appellate Committee of the House of Lords should be replaced by a Supreme Court of the United Kingdom and those members who did not. Accordingly, we make no recommendation to the House.

    133.  We are agreed however that, were a Supreme Court to be established, it should be housed in a building befitting its importance but it is not for us to make the choice."

  In relation to Middlesex Guildhall, no further work was commissioned by the Project as the details required for completing a Green Book analysis had been completed in May 2004.

  A sequence of meetings were arranged between the DCA appointed negotiating team (Knight Frank & Michelmores) and the Inland Revenue, Somerset House Trust and DCMS to take place between the end of July and August. These meetings were to identify the likely cost, timeframe and financial impact of any Inland Revenue decant from the New Wing arising out of any decision to select it as the preferred location.

  On 9 August a meeting was held with representatives from English Heritage (EH) and Westminster Planning Authority (WPA) at Somerset House to ascertain their views towards the existing design of the New Wing and the proposals contained within the interventionist scheme. Letters were subsequently received from both English Heritage and Westminster Planning Authority detailing their views towards the plans for both New Wing Somerset House and Middlesex Guildhall. At this stage English Heritage proposed that 10 Whitehall Place might be a suitable option and this was subsequently investigated through the OGC. The OGC advice was that this site formed part of existing Crown Estate development plans.

1.9  Building Selection Process—Evaluation of Preferred Option

  Upon receipt of the letters from the planning agencies, Feilden & Mawson were commissioned to produce conservation plans for both New Wing Somerset House and Middlesex Guildhall. These would be utilised in discussions with the planning agencies in order to produce building designs that would meet the heritage requirements of each building. Supplemental to the comments recorded in the letters, visits were arranged to both of the buildings for representatives from EH & WPA to "walk through" their concerns about the proposed plans, alongside members from the Project team.

  Concurrent to the ongoing work relating to the designs for each building, discussions were continuing between representatives from the Implementation Project and those representing the Somerset House Trust, Inland Revenue and DCMS. These separate discussions took place in order to identify the financial and contractual information inherent evaluating the New Wing as a building option, with a view to completing the Green Book Analysis. Towards the end of August a building progress submission was put forward to the Secretary of State outlining the present position with regard to the building decision. Arising from this submission the Secretary of State requested a meeting with the Project in order to discuss progress.

  The draft Green Book Analysis was received towards the beginning of September, which formed the basis for evaluating the two options, together with their associated designs and procurement options.

  On 10 September the Secretary of State expressed concern that progress upon the selection of the building had seemingly stalled in discussions with both EH & WPA. [7]

  The Secretary of State directed that there be:

    —    Further work on assessing the planning issues on Middlesex Guildhall and the New Wing of Somerset House with English Heritage and Westminster Council;

    —    Exploration of possible interim options for housing the Supreme Court in central London; and

    —    Further searches for potential new build sites or prestigious stand-alone buildings within central London.

  It was also agreed that a subsequent progress submission would be produced in two weeks, in order to update the Secretary of State on the directed actions.

  A series of meetings were arranged with representatives from both English Heritage and Westminster Planning Authority, in order to discuss the proposed designs for both of the buildings and their concerns, as well as those areas of negotiation. As well as the meetings, Feilden & Mawson produced a conservation plan concerning Somerset House, that would assist all involved in the Building decisions gain a better understanding of the areas that required to be retained.

  An update submission was forwarded to the Secretary of State, detailing the progress made on the directed actions. The views of the planning Authorities gleaned from the meetings were relayed, and the Secretary of State was informed that a formal letter would be received towards the beginning of October. An evaluation of the interim options identified during that two-week period was also included[8] which the options that had been investigated. The criteria for the search was:

    —    Over 3,000 square metres;

    —    Containing several good size rooms (in particular, space for hearing rooms) which would not need major structural works to create;

    —    No obvious planning difficulties;

    —    Was not part of a complex building rationalisation scheme (which would need to be untangled);

    —    Could be delivered quickly (by early 2007 at latest);

    —    The building was currently unoccupied or had an easily identifiable decant solution (a standard office might be acceptable, but an operational court would not); but

    —    With no requirement for a prestigious building.

  The search and evaluation was undertaken in conjunction with colleagues from OGC (Office of Government Commerce), Knight Frank, Land Securities and DCA Officials. In response to the submission the Secretary of State requested a progress meeting with the Project Team. Chris Leslie MP, Parliamentary Under secretary, also suggested that Alex Allan, DCA Permanent Secretary, meet with representatives from the planning authorities to discuss their points raised and also meet with Lords Bingham and Nicholls, in order to discuss the matter further with them.

    "I turn to practicalities. The Supreme Court must have appropriate premises. The Government have agreed a set of requirements with the Law Lords and our commitment to meeting them is clear. The executive must be held accountable for that. The search for suitable premises must not distract us from the principles behind these reforms. It is no reason to delay legislation. However, I agree with the noble Lord, Lord Crickhowell, that proper information needs to be provided before this Chamber reaches a conclusion.

    I have learnt many things as a result of my involvement in the Dome, one of which is not to keep talking about what is going on. It is better to wait until you have your final position and then say what it is."

    (Lord Falconer of Thoroton, Secretary of State for Constitutional Affairs, 11 October 2004.)

  On 13 October the Secretary of State discussed the Building decision with officials and discussed the way forward and his requirements for delivering the announcement. At that meeting it was agreed that:

    —    There should be a meeting between the planning authorities and the DCA Permanent Secretary, concerning Middlesex Guildhall;

    —    The costs for delivering Somerset House should be verified and confirmed at the next meeting; and

    —    The potential new build sites highlighted to the DCA Commercial Director by Land Securities be investigated, and outline plans produced.

  It was agreed that a follow-up meeting would be arranged for two weeks time. On 15 October Alex Allan, Permanent Secretary for the Department for Constitutional Affairs visited both of the locations under consideration in order to obtain a better understanding of the issues relating to both buildings.

  On 20 October, Alex Allan met with representatives from Westminster City Council to discuss the proposed plans for both New Wing Somerset House and Middlesex Guildhall and their planning objections/concerns regarding the designs for both. The Planning representatives stated that, in relation to Middlesex Guildhall, the more radical the intervention the less likely the plans would receive approval. On 21 October, Alex Allan met with Lord Bingham and Lord Nicholls, in order to provide them with an update concerning the building decision and to ascertain their views concerning the existing designs for both options.

  On 3 November, a progress meeting was held with the Secretary of State, in order to inform him of the progress and developments over the preceding 14 days. At that meeting details concerning the possible new build option, including consideration of outline designs, were discussed and explained.

  On 4 November a meeting took place with representatives from Westminster Planning Authority and English Heritage, following on from the earlier meeting between Alex Allan and the Chief Executive. At that meeting considerable progress was achieved with regard to the areas of compromise concerning the outline designs for Middlesex Guildhall, however there were still a couple of areas that required further consideration. Both English Heritage and Westminster welcomed the sympathetic approach to the hearing room designs and thought that the total renovation of the furniture in those two rooms could be acceptable together with the Law Lords' proposed re-orientation of the layout of hearing room three. This radical refurbishment would, however, need to be weighed against the overall package for the building and they would want to see other benefits, which might include a more conservative approach to the design of hearing room two, display of historic furniture (such as the judge's throne) in a publicly accessible part of the building, and introduction of educational facilities.

  In the light of these comments, Feilden & Mawson were commissioned to provide a comprehensive conservation package illustrating the approach to the whole building, including the exterior and justices' chambers as well as the hearing rooms.

  Concerning Somerset House the responses received from both English Heritage and the Westminster planners were reasonably positive and it was clear that they would be willing to consider a number of conservation-based schemes. From these discussions it was clear that there were areas where compromise would be required from the Law Lords, in particular the hearing room ceiling heights and car parking. The outstanding issue regarding Somerset House was the agreement towards the Heads of Term, and in particular the value of the rent to be paid by the DCA. On 8 November a meeting was held with representatives from Inland Revenue, DCMS and OGC in order to discuss the issue, to identify the next steps and to try and resolve the impasse. It was agreed that negotiations would continue and that this matter would be discussed between Alex Allan and Sir Christopher Mallaby, when they met subsequently on 15 November.

  Arising out of discussions with representatives from OGC, three potential new build options were identified as possibly meeting our requirements, these were:

    —    Horseferry Road;

    —    The "triangle" of land in front of the Queen Elizabeth II Conference Centre; and

    —    Queen Anne's Chambers.

  Upon brief evaluation of the locations, each was found to be unsuitable to the requirements for a UK Supreme Court. They had been identified as potential contingency options, if either of Middlesex or the New Wing had proved to be unacceptable to the key stakeholders. Therefore, a detailed evaluation was not undertaken, as it would have been encompassed within any OJEU exercise subsequent to any December decision.

  On 16 November, Lord Falconer appeared before the Constitutional Affairs Committee to discuss the Constitutional Reform Bill, including the creation of a Supreme Court, in the light of the Committee's fact-finding visit to Australia and New Zealand.

    "There are two buildings, as you know, Middlesex Guildhall and Somerset House. Both of them raise different sorts of issues. Both of them raise planning issues; both of them raise financial issues, because, as you seek to solve the planning issues, so greater expenditure may be required in order to achieve that. We are in the process of working through development plans for both models to see which one can be delivered. I cannot tell you what the result would be at the moment and I cannot give you detailed financial figures at the moment, because we are in the process of working them through."

    (Lord Falconer of Thoroton, Secretary of State for Constitutional Affairs and Lord Chancellor, 16 November 2004.)

  Following a subsequent meeting with representatives from English Heritage and Westminster Planning Authority, a meeting took place with Lord Bingham and Lord Nicholls, chaired by the Permanent Secretary Alex Allan, in order to discuss the present state of affairs regarding the building decision and to discuss the next steps towards delivering a building announcement. It was agreed that Lord Nicholls and Lord Bingham should visit Middlesex Guildhall again and that the remainder Law Lords should re-visit the building, and receive a presentation from representatives from Feilden & Mawson as to the outline designs.

  The visits to Middlesex Guildhall took place on 30 November and 2 December, at which the Law Lords acknowledged the appropriateness of the Middlesex Guildhall as a suitable building for the Supreme Court. However, they did identify a few decorative issues that will require resolution with the planning authorities during the process of fitting out the building. Concurrently to the visits to Middlesex Guildhall, the final discussions were taking place with the legal representatives for the Somerset House Trust, in order to deliver an agreement regarding the heads of term.

  The points flagged up by the Law Lords about Middlesex Guildhall were raised at the meeting with English Heritage and Westminster City Council on 6 December. It was clear that they would not be drawn into a firm view on individual points in isolation from the overall package, although they did make clear that this was a project "worth pursuing". English Heritage asked for a number of detailed studies (for example a strategy on displaced artworks and on display of items of historic significance), and their view was that it would be more helpful to take this work forward if the Government gave a clear indication that Middlesex Guildhall was its preferred option.

  All of this information was collated and presented to the Secretary of State in a submission on 7 December, which recommended that Middlesex Guildhall be announced as the preferred location. A subsequent series of meetings with Lords Bingham and Nicholls took place, as well as discussions with representatives from both English Heritage and Westminster Planning Authority before the Secretary of State confirmed his decision.

22 December 2004

Annex A

EVALUATION CRITERIA

  The following table outlines the matrix used during the evaluation of the buildings under consideration.
Quality Criteria WeightQuality Criteria Weight
1.  Suitability 25% 3.  Prestige and Location 25%
(i)  Meets Statement of Requirement (give evidence of any degree of compromise and scope for future expansion) 3 x(i)  Transport Links/Accessibility 1 x
(ii)  Operational Efficiency (eg chambers grouped together, proximity of staff to judiciary, library to chambers) 2 x(ii)  Local Services (eg nearby catering facilities, research facilities, post office etc) 1 x
(iii)  Fit with wider DCA Estate Strategy 1 x(iii)  Identity of Building (listed status, character features, history and design, views expressed by stakeholders, Would the character of the building reflect the status and independence of the Supreme Court? etc) 3 x
(iv)  Policy Suitability (refer to Programme level critical success factors) 3 x
2.  Deliverability 25% 4.  Cost Criteria 25%
(i)  Timing3 x(i)  Affordability 3 x
(ii)  Complexity (decant required, potential problems with lease/sale negotiations, planning restrictions) 2 x(ii)  Value for Money 3 x
(iii) Control Over Building (access and constraints ie listing restrictions) 1 x
Score:

1.  Criteria have not been met in significant aspects.

2.  Criteria have not been met in some minor aspects.

3.  Criteria have been met.

4.  Criteria have been exceeded in some minor aspects.

5.  Criteria have been exceeded in significant aspects.

  Significant or likely risks should reduce the score that is awarded & evidence recorded to support the marking.

Weighting:1.  Desirable—criteria that is not met can be offset through achieving compromise or benefits elsewhere.

2.  Significant.

3.  Essential.

Annex B

SUPREME COURT IMPLEMENTATION PROGRAMME BUSINESS CASE V2.1 (EXTRACT)

3.1  The Refurbishment Project Location Options Appraisal

  The options appraisal exercise for the Refurbishment project reviewed a number of appropriate locations for UK Supreme Court, with the preferred option being the Middlesex Guildhall. The initial options appraisal exercise took place in November 20057[9] and considered eight location options. The key outcomes are summarised below:

Refurbishment Location OptionsDescription StrengthWeakness OpportunityThreat
Do Nothingn/an/a n/an/an/a
1Middlesex Guildhall
Middlesex Guildhall is a Grade 2* listed building situated on Parliament Square with moderate intervention procured through coterminous lease and leaseback.
Significantly less expensive than the other options in cash terms (£158 million net cost as opposed to £229 million[10] for Option 2 and £194 million for Option 3). The building is owned by DCA and currently houses courtrooms that would be relocated. Risk to the existing HMCS operation that would be displaced.
2Somerset House with DCA funded moderate intervention. Somerset House is a Grade 1 listed building situated on The Strand. The Supreme Court would require the use of one wing of the building, New Wing, currently leased by the Inland Revenue. Option 2 assumed that DCA funds the required refurbishment works and leases New Wing for 35 years. Grade 1 listed building with an impressive external appearance and could accommodate the schedule of requirements and the stakeholder requirements. Most costly due to the high up-front capital cost. DCA would have had to fund the decant costs of the Inland Revenue.
3Buckingham Gate—Buckingham Gate (Wellington House) under a Private Developer Scheme ("PDS"). Option 3 assumed that a private sector developer funded a new build on the Buckingham Gate. This site was at the time leased by the Metropolitan Police and DCA pays for the property via a lease. Buckingham Gate was more expensive than Middlesex Guildhall, the ongoing costs would have been significantly higher, particularly the lease.


  The results of the Refurbishment Location Options ranking are shown below:

Refurbishment Location Options Ranking OptionQualitative — Max 75 Quantitative — Max 25Total Score Max 100
Location
Do Nothingn/a n/a
1Middlesex Guildhall 411354
2Buckingham Gate43 851
3Somerset House44 549




3   The original requirement was for a space of approximately 3000 m2, however subsequent to the initial definition of the required space stakeholder meetings and views expressed increased the requirement to its current level. Back

4   In response to the consultation paper, the Lords of Appeal in Ordinary recommended that the JCPC be co-located with the Supreme Court in order to maximise the relevant resources (paragraph 6; 27 October 2003). Back

5   The initial 48 properties were evaluated against the statement of requirements, the buildings location/prestige and delivery date. Back

6   The Green Book, Appraisal and Evaluation in Central Government, HM Treasury: The Green Book is a best practice guide for all central departments and executive agencies, and covers projects of all types and size. It aims to make the appraisal process throughout government more consistent and transparent. Back

7   Note of meeting 10 September 2004, attached as flag A to 24 September 2004 submission to Secretary of State, providing an update on the building selection procedure. Back

8   Details of the evaluation are outlined in Flag C to Supreme Court-Progress on Building Evaluation 24 September 2004. Back

9   Ernst and Young UK Supreme Court Value for Money Evaluation November 2005. Back

10   Net Cost to Treasury £229 million Somerset House with Moderate Intervention, £194 million Buckingham Gate PDS. Back


 
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Prepared 9 October 2007